UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation on March 7 , 20 1 4



### NOTICE OF ACTION TAKEN

-- DOCKET S DOT

- OST

- 200 6

- 24629

and DOT

- OST

- 2006

- 24630

_____________________________________________________________________________________________________________________________ ___ This serves as notice to the public of the action described below, taken by the Department official indicat ed (no additional confirming order will be issued in this matter).

Applicant: YANGTZE RIVER EXPRESS AIRLINES CO., LTD. ( Yangtze )

Date Filed: February 21, 2014

Relief requested: E xemption from 49 U.S.C. § 41301 to engage in scheduled foreign air transportation of property and

mail between any point or points in the People’s Republic of China (PRC), via any intermediate points, to any point or points in the United States open to scheduled international operations, and beyond to any points outside t he United

States

.

Applicant representative s : Josh Romanow and Peter Nelson , 202

- 6 63

- 8000

DOT analyst: Brett D. Kruger , 202

- 366

- 8025

Responsive pleadings: None.

DISPOSITION

Action: Approved ( subject to conditions )

. 1

Action date: March 7 , 20 1 4 2

Effective dates of authority granted: March 7 , 2014 , through March 7 , 2015

.

Basis for approval: United States

- China Air Transport Services Agreement

Except to the extent exempted/waived, this authority is subject to the te rms, conditions, and limitations of our standard exemption conditions (attached).

Action taken by: Paul L. Gretch, Director

, Office of International Aviation

_____________________________________________________________________________________________________________________________ __ Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) our action was consistent w ith Department policy; (2) the applicant was qualified to perform its proposed operations; (3) grant of the authority was consist ent with the public interest; and (4) grant of the authority would not constitute a major regulatory action under the Energy Poli c y and Conservation Act of 1975. To the extent not granted/deferred/dismissed, we denied all requests in the referenced Docket s . We may amend, modify, or revoke the authority granted in this Notice at any time without hearing at our discretion.

Persons e ntitled to petition the Department for review of the action set forth in this Notice under the Department’s regulations, 14 CFR §385.30, may file their petitions within seven (7) days after the date of issuance of this Notice. This action was effec tive

wh en taken, and the filing of a petition for review will not alter such effectiveness.

An electronic version of this document is available on the World Wide Web at: http://www.regulations.gov

1 We point out to the carrier that we are placing on t he authority being awarded here the condition concerning new coterminalization of U.S. points for all

- cargo services that we have previously plac ed on the carrier’s authority (s ee Notices of

Action Taken dated October 20, 2010; January 21, 2011; November 4, 2011; November 15, 2012; and November 19, 2013, in the

instant dockets ). We also point out that our action here does not preclude Yangtze from exercising the Alaska coterminalization authority granted by Notice of Action Taken dated August 16, 2012, in Dockets DOT

- OST

- 2010

- 0200, DOT

- OST

- 1999

- 5035, and

DOT

- OST

- 1996

- 1600.

2 We acted on the request before the expiration of the 15

- day answer period with the consent of all parties served.

### Foreign Carrier Exemption Conditions

In the conduct of the operations authorized, the foreign carrier applicant(s) shall:

(1) Not conduct any operations unless it holds a currently effective authorization from its homeland for such operations, and it has filed a copy o f such authorization with the Department;

(2) Comply with all applicable requirements of the Federal Aviation Administration, the Transportation Security Administration, and with all applicable U.S. Government requirements concerning security, including, but not limited to, 14 CFR Parts 129, 91, and 36 and 49 CFR Part 1546 or 1550, as applicable. To assure compliance with all applicable U.S. Government requirements concerning security, the holder shall, before commencing any new service (including charte r flights) from a foreign airport that would be the holder’s last point of departure for the United States,

contact its International Industry Representative (IIR) (formerly referred to as International Principal Security Inspector) to advise the I IR of it s plans and to find out whether the Transportation Security Administration has determined that security is adequate to allow such airport(s) to be served ;

(3) Comply with the requirements for minimum insurance coverage contained in 14 CFR Part 205, and, prior to the commencement of any operations under this authority, file evidence of such coverage, in the form of a completed OST Form 6411, with the Federal Aviation Administration’s Program Management Branch (AFS

- 260), Flight Standards Service (any change s to, or termination of, insurance also shall be filed with that office);

(4) Not operate aircraft under this authority unless it complies with operational safety requirements at least equivalent to Annex 6 of the Chicago Convention;

(5) Conform to the airworthiness and airman competency requirements of its Government for international air services;

(6) Except as specifically exempted or otherwise provided for in a Department Order, comply with the requirements of 14 CFR Part 203, concerning waiver of Warsaw Convention liability limits and defenses;

(7) Agree that operations under this authority constitute a waiver of sovereign immunity, for the purposes of 28 U.S.C. 1605(a), but only with respect to those actions or proceedings instituted against it in any court or other tribunal in the United States that are: (a) based on its operations in international air transportation that, according to the contract of carriage, include a point in the United States as a point of origin, point of destination, or agreed stopping place, or for which the contract of carriage was purchased in the United States; or (b) based on a claim under any international agreement or treaty cognizable in any court or other tribunal of the United States. In this condition, the t erm "international air transportation" means "international transportation" as defined by the Warsaw Convention, except that all States shall be considered to be High Contracting Parties for the purpose of this definition;

(8) Except as specifically auth orized by the Department, originate or terminate all flights to/from the United States in its homeland;

(9) Comply with the requirements of 14 CFR Part 217, concerning the reporting of scheduled, nonscheduled, and charter data;

(10) If charter operations are authorized, except as otherwise provided in the applicable aviation agreement, comply with the Department's rules governing charters (including 14 CFR Parts 212 and 380); and

(11) Comply with such other reasonable terms, conditions, and lim itations required by the public interest as may be prescribed by the Department, with all applicable orders or regulations of other U.S. agencies and courts, and with all applicable laws of the United States

. This authority shall not be effective during a ny period when the holder is not in compliance with the conditions imposed above. Moreover, this authority cannot be sold or otherwise transferred without explicit Department approval

under Title 49 of the U.S. Code.

1 2/2007